Daily Market Color January 2, 2020Treasurys and Stocks Rally on First Trading Day of 2020 Treasurys and stocks rally to start first session of the year. Treasurys are higher across the curve to start the day, Treasury yields and swap rates falling 2-5 basis points across the curve as a result. Stocks are also higher, the S&P 500 and the Dow Jones Industrial Average both climbing 0.56% and 0.48% respectively. The strong start comes after a stellar 2019 across both bonds and stocks that saw the S&P 500 climb over 30% and 10-year yields fall 75+ basis points. Weekly U.S. jobless claims fall to four-week low. This morning’s jobless claims report showed the labor market remains robust, jobless claims falling by 2,000 to 222,000 from the prior week, marking the third straight drop in filings. A separate report announced that employers had the fewest job cutes since July 2018 totaling to 32,843 in December- down 26% from November and 25% from the year before. Day ahead. Though tomorrow is the first Friday of the month, the monthly jobs report will be pushed to January 10th. U.S., Canada, and Mexico manufacturing PMI data will be released later this morning at 9:45 EST. The report tracks monthly manufacturing activity through changes in production, new orders, employment, and prices and is expected to show continued optimism after the index dipped in the middle of 2019.